Market regulator the Securities and Exchange Board of India (Sebi) today directed 14 companies to act on pending investor complaints within 15 days, failing which a penalty of up to Rs 1 crore each would be imposed on them.
In two separate statements, the Sebi said it had received the complaints and sent them to the companies concerned, advising them to resolve the grievances and submit status reports within 30 days.
"These companies have not responded to Sebi's letter to resolve the complaints and some of the letters were returned undelivered.
"As per Section 15C of the Sebi Act, such companies shall be liable to a penalty of Rs 1 lakh for each day during which such failure continues or Rs 1 crore, whichever is less," sebi said.
The 14 firms are -- Hi-Tech Drugs, Dupont Sportswear, Jord Engineers India, Shukla Data Technics, Simco Industries, International Hometex, DSJ Communications, Raj Irrigation Pipes & Fittings, Top Telemedia, Ramgopal Polytex, Satguru Agro Industries, Indo Biotech Foods, Indo Biotech Herbal Remedies and Alpine Industries.
The first 11 of these firms have been warned of the monetary penalty, while remaining three have been told that action against them and their directors would be taken as per the relevant laws.
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The regulator said, "These companies are advised to obtain the complaints pending against them from the Sebi Office of Investor Assistance and Education and resolve the grievances."
In case the companies fail to redress the grievances and submit status reports to Sebi within 15 days, the regulator said, it will take action against them and their directors, including initiating adjudication proceedings.